In a significant development at the leading Taiwanese #crypto exchange #ACE , the founder of the exchange David Pan and his colleague Lin Nan, along with fourteen other employees, were arrested on charges of fraudulent practices. These charges concern false claims about speculative token listings intended to deceive investors and extract money from them.
The local city police conducted several raids at 15 locations in multiple cities throughout Wednesday. These raids aimed to arrest key individuals associated with the exchange, including Pan and Lin. This arrest followed a thorough investigation led by the Criminal Brigade of the New Taipei City Police, which uncovered a fraudulent scheme where crypto assets worth at least 200 million NT$ (approximately 6.4 million US dollars) were seized.
Accusations of a Fraudulent Scheme
According to the charges, Pan and Lin, along with their team, used social media platforms to spread false information about token offerings, which were in fact "worthless." The primary goal was to use MOCT and other #cryptocurrencies to obtain funds from more than 100 investors. The police stated that the charges involve Pan and Lin collaborating to create false advertisements, thereby deceiving investors in this manner over the last three years.
Furthermore, the charges include claims that this duo and their team created an atmosphere of Fear Of Missing Out (FOMO) and promised quick wealth. The ACE exchange was accused of boasting that some cryptocurrencies would be extremely bullish in the future, claiming these digital assets to be the latest technology.
Response of ACE Exchange and the Investigation
Despite the charges, Lin and Pan refused to cooperate with the police during the investigation and denied the accusations against them. The police registered cases under the criminal law, the Anti-Money Laundering Act, and the Banking Act.
In response to the accusations and media reports, the ACE Exchange website stated that none of the employees were involved in the case. Wang Chenhuan, president of ACE Exchange, said that the company's employees are fully cooperating with the prosecutor's investigation as witnesses.
Moreover, ACE announced that the MOCT/TWD trading pair would be delisted as of Monday. It assured that all pending orders would be automatically removed after delisting from the exchange. With this step, the exchange emphasized that its operations were not affected by the investigation and that reports of some currencies being involved in illegal activities dated back to 2019.
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